He promised returns of 10 to 15 percent on investments, and solicited more than $700,000 to purchase bogus homes in Prospect, Shelbyville and Goshen. Now, a Louisville man faces a federal charge for mail fraud related to his investors’ loss of $1.2 million in his real estate scheme.

A federal grand jury indicted Russell N. Daniel, 63, on a single count of mail fraud after an FBI investigation.

According to the indictment, between March 1, 2005 and October 31, 2008, Daniel swindled investors in his real estate business to obtain money and property.

Daniel’s business is registered as Daniel Enterprises Inc., and has also done business as Daniel Properties, ibuyhouseky.com and ahome4youky.com.

The business is classified as a foreclosure rescue and investment advisory service by the Better Business Bureau, although it is not BBB accredited.

On a grading scale of A to F, the BBB gives Daniel Enterprises Inc. a D.

The indictment alleges Daniel induced persons to invest in his real estate business by promising returns on investments ranging from 10 to 15 percent.

Further, Daniel represented that monies invested in his real estate business would be used by him to purchase, and on occasion, rehabilitate houses which in return would be sold for a profit.

Daniel allegedly solicited more than $700,000 to purchase houses purportedly located in Prospect, Shelbyville, Goshen and Lexington, Ky. as well as Jeffersonville, Ind., when in fact the addresses were fictitious.

The indictment alleges that Daniel used the money received from investors in theses fictitious transactions to fund unrelated matters, including using the investment monies to make payments of promised returns on unrelated investments.

In furtherance of his scheme, between December 28, 2006 and August 14, 2008, it is alleged that Daniel falsely represented to investors in properties located in Louisville, Pleasureville and Lexington, they would receive valid and legally enforceable mortgages on the properties which would provide legal security for their investments, when Daniel provided investors with false and fictitious mortgages totaling more than $530,000 which contained the forged signature of the notary public.

Between March 23, 2005 and May 27, 2009 it is further alleged that Daniel caused $35,000 to be invested with him by falsely representing to investors in the two properties located in Louisville, that the investors would receive valid and legally enforceable first mortgages on the properties which would provide legal security for their investments, when in fact, he did not provide investors with valid and legally enforceable first mortgages.

If convicted, Daniel faces up to 20 years in prison, a $250,000 fine and three years supervised release.